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8.1d Too Small to Matter? The Impact of Company Size and Cause Proximity on Consumer Response to Corporate Social Responsibility
Abstract
Numerous studies on corporate social responsibility (CSR) have focused mainly on theoretical development and managerial implications for large companies in general, while overlooking CSR engagement of small companies. Therefore, this study examined the impact of company size and cause proximity on consumer response to CSR initiatives. The findings show that individuals tend to evaluate a company as more socially responsible when the company is considered as small-sized than large-sized. In addition, for a large company, a local cause led to more favorable corporate image and attitude toward the ad than a national cause, whereas there was no difference for a small company. In contrast, for a small company, a national cause resulted in higher resilience of negative information than a local cause, whereas there was no difference for a large company. The research suggests that a different approach is needed for understanding consumer response to CSR engagement by small businesses. Further implications and future research are discussed.
First & Corresponding Author
Yoon Hi Sung, University of Texas
Authors in the order to be printed.
Yoon Hi Sung, University of Texas; Rachel Esther Lim, University of Texas; Wei-Na Lee, University of Texas